Blackbird, Incorporated reports the following information regarding its production cost. $$\begin{array} { l l }
\text { Units produced } & 39,000 \text { units } \
\text { Direct labor } & \$ 13 \text { per unit } \
\text { Direct materials } & \$ 17 \text { per unit } \
\text { Variable overhead } & \$ 7,800,000 \text { in total } \
\text { Fixed overhead } & \$ 9,750,000 \text { in total }
\end{array}$$
(a.) Compute production cost per unit under variable costing.
(b.) Compute production cost per unit under absorption costing.

Question

Blackbird, Incorporated reports the following information regarding its production cost. $$\begin{array} { l l } 
\text { Units produced } & 39,000 \text { units } \
\text { Direct labor } & \$ 13 \text { per unit } \
\text { Direct materials } & \$ 17 \text { per unit } \
\text { Variable overhead } & \$ 7,800,000 \text { in total } \
\text { Fixed overhead } & \$ 9,750,000 \text { in total }
\end{array}$$
(a.) Compute production cost per unit under variable costing.
(b.) Compute production cost per unit under absorption costing.

Quizplus · Accepted Answer

The Answer of Blackbird, Incorporated reports the following information regarding its production cost. $$\begin{array} { l l } 
\text { Units produced } & 39,000 \text { units } \
\text { Direct labor } & \$ 13 \text { per unit } \
\text { Direct materials } & \$ 17 \text { per unit } \
\text { Variable overhead } & \$ 7,800,000 \text { in total } \
\text { Fixed overhead } & \$ 9,750,000 \text { in total }
\end{array}$$
(a.) Compute production cost per unit under variable costing.
(b.) Compute production cost per unit under absorption costing.

Blackbird, Incorporated Reports the Following Information Regarding Its Production Cost